That Thing Rich People Do – Book Review

In today’s post I’m going to review a new book I recently read called That Thing Rich People Do: Required Reading for Investors.

I was fortunate to receive a review copy courtesy of author Kaye Thomas, who set out to write an investing book that would be “short enough so you might read it in odd moments while warming leftovers or waiting for you computer to reboot, yet it would also have to include the essentials that every investor should know.”

That’s a pretty ambitious undertaking…but in my opinion he succeeded with one of the best financial books I’ve read in some time.

That Thing Rich People Do is a short read that is broken up into manageable chunks and I just flew right through it.  The early chapters start with the basics and provide a basic foundation of investing terms and principles.  If you’re already a savvy investor you can probably skip these chapters since they are targeted more toward people with no experience at all and need to start with the basics.

Once you’ve laid the foundation,  you’ll learn how to build your own strategy of investing.   Thomas walks you through the process smoothly and offers advice on every decision you’ll be required to make.

One of my favorite sections was the Four Rules for Success that will help you minimize losses and achieve good long-term results:

1. Create and maintain a regular program of saving money.

2.  Allocate your money between stocks and bonds in a ratio that makes sense based on your age and risk tolerance.

3.  Diversify your investments within each category of investments.

4.  Keep investment expenses to a minimum because they will eat away at your earnings.

A few other areas in which the author and I agree include the importance of automating your savings and the superiority of investing in index funds rather than trying to time the market.

All in all I found That Thing Rich People Do to be an outstanding introduction into the world of investing.   Someone with no investing experience at all could read this book and walk away with the knowledge they need to form a solid investing plan.

I highly recommend you pick up a copy today at Amazon.  Just click here now to learn more and order.